Hydro’s Alunorte gas disruption could cost $210m across Q3 and Q4
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Alunorte, Hydro’s alumina refinery in Brazil, has cut alumina production to 50 per cent after disruptions to its natural gas supply from CELBA. The disruption could cost Hydro’s Bauxite & Alumina business up to USD 100 million in Q3 2026. Alunorte could also face another USD 110 million impact in Q4 due to higher gas costs.
CELBA informed Alunorte in August 2026 that it was facing disruptions to natural gas supplies. The refinery has not received the gas covered by its contract and is now buying gas at spot market prices.
Alunorte has cut production to 50 per cent to match the gas currently available. The refinery has asked for direct access to the Barcarena LNG receiving and regasification terminal.
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Alunorte plans to return to full production once gas supplies improve. Hydro does not expect the current situation to cause any further disruption to gas supplies.
CELBA said it is looking for gas that can be supplied to Alunorte on market terms that fit its current financial position.
Alunorte is also working on a longer-term gas supply agreement on competitive terms. In the meantime, it will continue to look for other gas supplies while protecting its rights under the existing agreement.
The final financial impact will depend on gas prices and the outcome of the contract discussions. Alunorte is also taking legal and other steps to protect its rights under the existing gas supply agreement.
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